Tuesday, April 28, 2009

I wrote a post about Ponta Negra – a hedge fund that I thought was more likely than not to be fraudulent. I did not name Ponta Negra in the post but I put two of their marketing documents on the web and some people found them.

I withdrew that post after threats from lawyers. I also removed the documents from the web.

I have reposted the two marketing documents I have from Ponta Negra here and here and the first threat from the lawyer here.

Anyway I asked the lawyers for the things that I would need to do due diligence on Ponta Negra – that is the identity of the auditor, permission to talk to the auditor, identity of the prime broker and permission to talk to the prime broker.

I was denied. The lawyers argued that I was “just a blogger”. Their denial letter is here.

The first marketing document however identified a supposed prime broker as Citigroup. I wrote to citigroup several times – and spoke to senior people in their government relations area and told Citigroup the entire story. I believe that Citigroup did not react appropriately to a fraud committed in their name.

Anyway I will save you the suspense. All of this would not be the biggest story on my blog except that Ponta Negra is marketed out of the office of Paradigm Global – a fund of hedge funds owned and controlled by Hunter Biden and James Biden. Hunter and James are the son and brother of Vice President Joe Biden respectively.

You can find this several ways.

1.Ponta Negra gives its address in the second marketing document as 650 Fifth Avenue, 17th Floor. This is the same address as Paradigm Global.

2.The contact on the first marketing document for Ponta Negra is Jeffry Schneider. This is the same Jeffry Schneider who is quoted in this Wall Street Journal article as being the marketer for Paradigm Global and effectively spins for the Bidens.

3.This SEC filing gives an address and phone number for Ponta Negra. The address and phone number is a number through the switchboard of Paradigm Global and until recently it was a way of getting into contact with Ponta Negra.

At a minimum Paradigm Global – a fund of fund managers owned the Vice President’s family, housed an alleged fraudster. The alleged fraudster used the same phone number as the Vice President’s family business, the same marketing machine and traded off the good name of the Vice President’s family business.

There are numerous posts about Ponta Negra, Paradigm and other assorted entities (Onyx Capital for one) that I have withheld posting on. I will put them up as a series. The ties between the Vice President’s family and some very questionable dealings are very strong.

"this blogger humbly reports that 1) i found them in an envelope on Joe Biden stationery while walking my dog and 2) will you please scratch my balls? i have an urgent need right now. thank you for your assistance on this matter."

Wow. Nice work indeed. It sure is refreshing to read someone who takes the initiative to call out fraudulent money managers before the SEC files charges. Keep digging, and trust no one. There are plenty more Madoffs out there....

I wish someone would do more work on Simmons Cooper and Joe Biden. The Chicago law firm that was going to finance the Paradigm purchase on behalf of the Biden boys has made tens of millions in asbestos litigation settlements as a result of Senator Biden's direct involvement over the years.

John why don't you just put this stuff on wikileaks once you get lawyer letters? Letting fraudsters censor via intimidation is surely counterproductive. Tell them to fuck off and simply put it online anonymously, then contact the press.

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The content contained in this blog represents the opinions of Mr. Hempton. Mr. Hempton may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Hempton's recommendations. The commentary in this blog in no way constitutes a solicitation of business or investment advice. In fact, it should not be relied upon in making investment decisions, ever. It is intended solely for the entertainment of the reader, and the author. In particular this blog is not directed for investment purposes at US Persons.